ACCOUNTS PAYABLE. For Hammerton Autos, a used-car dealer, the following transactions occurred during the first 10 days of August:

a) Hammerton purchased on credit space for classified advertisements in the Chicago Tribune for $245. The advertising was run the day the space was purchased.

b) Hammerton purchased office supplies from Office Depot on credit in the amount of

$185.

c) One of Hammerton’s sales staff sold a car. The salesperson’s commission is $100.

The commission will be paid September 10. (Concern yourself only with the commission.)

d) The electric bill for July was received. The bill is $239 and is due August 15.

e) A $390 bill from Carey Alignment Services was received. Carey had aligned 10 cars for Hammerton in late July. The payment is due August 20.

REQUIRED:

Prepare journal entries for the above transactions. Assume that Hammerton prepares annual financial statements on December 31.